USDA Expands SNAP Dairy Nutrition Incentives with New Grant to Auburn University

USDA Expands SNAP Dairy Nutrition Incentives with New Grant to Auburn University

WASHINGTON, April 1, 2026-The U.S. Department of Agriculture (USDA) has awarded Auburn University's Hunger Solutions Institute (HSI) a $2.99 million grant, using FY2025 funding appropriated by Congress, to expand SNAP Healthy Fluid Milk Incentives (HFMI) projects across 169 SNAP-authorized retail stores in nine states. The award includes 75 new HFMI locations in Arkansas, Georgia, Kansas, Minnesota, and Oklahoma, along with the renewal of 94 existing sites in Alabama, California, and South Dakota. By scaling this targeted SNAP incentive, USDA is equipping more retailers to help SNAP households purchase fluid milk-one of the most under-consumed, nutrient-dense foods identified in the Dietary Guidelines for Americans-while reinforcing the critical role dairy plays in improving diet quality and advancing public health. Since 2020, HFMI has expanded to more than 1,270 retail stores in 33 states.

The International Dairy Foods Association (IDFA) welcomed the announcement, highlighting HFMI as a proven approach to encouraging healthier food choices through the SNAP program. "SNAP dairy incentives are one important way we can help to make America healthy again," said Michael Dykes, D.V.M., president and CEO of IDFA. "We appreciate Congress's investment in HFMI and USDA's strong implementation of the program to help families choose more nutrient-dense dairy foods, support healthier diets, and deliver real value for taxpayers-all while supporting America's dairy farmers and processors."

"The U.S. Department of Agriculture is pleased to partner with Auburn University's College of Human Sciences to improve consumption of fluid milk," said Patrick Penn, deputy under secretary for food, nutrition and consumer services at USDA. "Milk, especially whole milk, is paramount to the recently released Dietary Guidelines for Americans, 2025-2030. The Department looks forward to the Hunger Solutions Institute encouraging not only more milk consumption, but how to better use the incentive to purchase other healthful, less processed SNAP-eligible items."

A Proven Approach to Incentivizing Healthy Choices Through SNAP

HFMI-also known as "Add Milk"-provides SNAP participants with incentives to purchase fat-free and low-fat milk, helping families access essential nutrients while making the most of their food budgets. The program operates through both coupon and automatic discount models, reducing cost barriers at the point of purchase and encouraging repeat purchases of healthier options.

New data from Auburn University's Hunger Solutions Institute show that HFMI is delivering measurable results for families, retailers, and communities.

Between May 2023 and September 2025:

• More than $4.3 million in skim and 1% milk was purchased using SNAP benefits at participating retailers
• SNAP households used $2.39 million in HFMI incentives, driving additional food purchases and increasing overall basket size
• Participating retailers saw strong engagement, with 95% redemption rates for incentive coupons at select locations

HFMI is also reaching a significant number of families and driving sustained behavior change. The program has served more than 612,000 unique SNAP households, with an average of more than 28,000 households participating each month. As the program has expanded, purchases of healthier milk options have increased substantially. SNAP household sales of skim and 1% milk at participating locations grew 72% from fiscal year 2024 to fiscal year 2025, demonstrating the program's ability to shift purchasing patterns toward more nutritious choices.

"The continuation and expansion of HFMI represents an important step forward," said Alicia Powers, Managing Director, Hunger Solutions Institute and Principal Investigator of HFMI. "The most recent cooperative agreement is the first to demonstrate sustainability of participating retailers across multiple funding cycles, indicating proven successes at the program, retailer, and household levels. The recent award also continues expanding HFMI to additional retailers, communities, and households ensuring this work makes a lasting difference nationwide."

In 2025, the Make America Healthy Again Commission highlighted how increasing dairy consumption through SNAP healthy eating incentives can improve health. Milk, cheese, yogurt and other cultured dairy products provide essential nutrients including high-quality protein, calcium, vitamin D, that support improved health outcomes for Americans.

IDFA continues to advocate for Congress to appropriate funding to continue and launch new HFMI projects, as well as to expand HFMI into a broader Dairy Nutrition Incentives Projects (DNIP) that incentivizes the purchase of all varieties of milk, as well as cheese, yogurt and cultured dairy products. The 2026 Farm Bill passed out of the House Agriculture Committee this month included DNIP. IDFA encourages the Senate to similarly include DNIP in its Farm Bill when it takes up the legislation.

For more information on Healthy Fluid Milk Incentives (HFMI) or Add Milk, visit here.

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Contact: [email protected]

The International Dairy Foods Association (IDFA), Washington, D.C., represents the nation's dairy manufacturing and marketing industry, which supports more than 3 million jobs that generate $198 billion in direct wages and $779 billion in overall economic impact. IDFA's diverse membership ranges from multinational organizations to single-plant companies, from dairy companies and cooperatives to food retailers and suppliers, all on the cutting edge of innovation and sustainable business practices. Together, they represent most of the milk, cheese, ice cream, yogurt and cultured products, and dairy ingredients produced and marketed in the United States and sold throughout the world. Delicious, safe and nutritious, dairy foods offer unparalleled health and consumer benefits to people of all ages.